How much should I budget for ads?
Stop capping your ads. Start thinking about how far they can take you. The smartest marketers don’t set limits—they set goals.
I hear in meetings and read in business books all the time, where people suggest having a defined marketing budget as a percentage of sales.
Like you should spend 10% of sales revenue on marketing.
I don’t think it makes sense.
Here’s my answer. Most people only have a marketing budget when their marketing isn’t working. Because if you’re putting in RM100 and getting RM400 back, why wouldn’t you want to invest as much as your cash flow allows?
Here are better questions to ask:
- How much is an event ticket?
- What’s the minimum ROAS you need?
Example: My event ticket is RM300. I need a minimum of 4X ROAS, else it cuts into my profit. Therefore, the max I can spend per acquisition is RM75.
Then invest as much cash into ads as you can, as long as you continue getting ticket sales below RM75 per sale.
There’s a smarter way to re-engage and close sales on autopilot
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In fact, it’s the #1 factor why so many lead-gen marketing campaigns fail.
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